Ask ET Mutual Funds: Can I get out of an ELSS before three years?

I am investing through SIP in IDFC Premier Equity Growth Fund. What are your views on this fund? Should I keep investing? I also have an SIP in Axis Long Term Equity Fund which is a tax saver fund. Is it possible to withdraw money from tax saver funds before three years after paying some kind of penalty or to switch/transfer the amount to another fund?
--Gaurav Singhal

Bhuushan Godbole, Sebi Registered Investment Adviser responds:

You should consider exiting from IDFC Premier Equity Growth Fund if you don’t have a long-term view. It is a small/midcap fund. Its risk grade is average and return grade is below average. If you have a long-term horizon, you can continue investing in it. Otherwise, take your money out.

Equity Linked Savings Scheme (ELSS) cannot be redeemed before the completion of mandatory lock-in period of three years from the date of investment.


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